Valuation - Target priceTo be honest, didn't expect to see SP as low as 0.07. Q3 report showing nearly 0.07 cents/share cash on the balance sheet.
Investors may be worried that Q4 will be similiar to Q3. An update on sales with things opening up during fiscal Q4 would have been nice, even without any official numbers.
I base target price on a combination of Revenue, EBITA, and Earnings, and adjust multiples of each for market cap and EV. Im estimating the latter 2 to be basically flat for fiscal 2020, so have a revenue based share price of +/- 0.09, not counting the cash on the balance sheet. Just to be clear that is current share price target, before Q4 release.
CEO suggests business is improving and once we get another quarter with positive EBITA and EPS, I think we will get a quick move up as investors can more confidently calculate a valuation. How long we have to wait for it I am not sure but expecting it in fiscal Q1 2021 as expectations of a vaccination may have positivly affected sales. Hope I am wrong and it happened in Q4 2020!!!
Hopefully our patience pays off. Disclosure: I have shares in PTE.
GLTA.